Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of Segment Reporting Information, by Segment

Totals in the following tables may not calculate exactly due to rounding.


	Three Months Ended March 31, 2026
	TH		BK		PLK		FHS		INTL		RH		ELIM		Total
Revenues from external customers	$	997	$	317	$	190	$	60	$	253	$	448	$	—	$	2,264
Intersegment revenues (a)	—		48		—		—		—		—		(48)		—
Total revenues	$	997	$	365	$	190	$	60	$	254	$	448	$	(48)	$	2,264

Operating costs and expenses:
Supply chain cost of sales	$	564	$	—	$	—	$	—	$	—	$	—	$	—	$	564
Company restaurant expenses (b)	9		43		38		10		—		401		(24)		477
Segment F&P expenses	82		34		3		2		(14)		—		(4)		103
Advertising expenses and other services	82		141		74		21		21		23		(21)		341
Segment G&A	34		32		18		13		51		24		—		173
Adjustments:
Cash distributions received from equity method investments	3		—		—		—		—		—		—		3
Adjusted Operating Income (Loss)	$	229	$	115	$	57	$	14	$	196	$	(1)	$	—	$	610

Additional segment information:
Depreciation and amortization	$	27	$	12	$	4	$	1	$	7	$	27	$	—	$	78
(Income) loss from equity method investments	$	(3)	$	—	$	—	$	—	$	1	$	—	$	—	$	(2)
Capital expenditures	$	5	$	5	$	3	$	1	$	2	$	16	$	—	$	32

(a)Consists of BK and INTL royalties, property, advertising, and other services revenues from intersegment transactions with RH.

(b)The components of Company restaurant expenses for our RH segment are included below.


	Three Months Ended March 31, 2025
	TH		BK		PLK		FHS		INTL		RH		ELIM		Total
Revenues from external customers	$	903	$	308	$	194	$	54	$	218	$	432	$	—	$	2,109
Intersegment revenues (a)	—		48		—		—		—		—		(48)		—
Total revenues	$	903	$	356	$	194	$	54	$	218	$	432	$	(48)	$	2,109

Operating costs and expenses:
Supply chain cost of sales	$	496	$	—	$	—	$	—	$	—	$	—	$	—	$	496
Company restaurant expenses (b)	9		55		39		9		—		379		(23)		468
Segment F&P expenses	78		31		2		2		5		—		(4)		114
Advertising expenses and other services	66		132		72		17		23		21		(20)		311
Segment G&A	37		36		21		14		52		24		—		184
Adjustments:
Cash distributions received from equity method investments	3		—		—		—		—		—		—		3
Adjusted Operating Income	$	220	$	103	$	60	$	11	$	138	$	7	$	—	$	539

Additional segment information:
Depreciation and amortization	$	27	$	13	$	3	$	1	$	7	$	20	$	—	$	71
(Income) loss from equity method investments	$	(3)	$	—	$	—	$	—	$	(2)	$	—	$	—	$	(5)
Capital expenditures	$	5	$	5	$	2	$	1	$	2	$	16	$	—	$	31

The following table presents the components of Company restaurant expenses for our RH segment (in millions):


	Three Months Ended March 31,
	2026		2025
Company restaurant expenses for RH segment
Food, beverage, and packaging costs	$	133	$	121
Restaurant wages and related expenses	146		145
Restaurant occupancy expense and other	122		113
Total	$	401	$	379

Schedule of Revenues by Operating Segment and Country

The following tables present revenues by country (in millions):


	Three Months Ended March 31,
	2026		2025
Revenues by country (c):
United States	$	1,099	$	1,073
Canada	902		815
Other	263		221
Total	$	2,264	$	2,109

(c)Only the United States and Canada represented 10% or more of our total revenues in each period presented.

Schedule of Reconciliation of Segment Income to Net Income (Loss)

Adjusted Operating Income is used by management to measure operating performance of the business, excluding these non-cash and other specifically identified items that management believes are not relevant to management’s assessment of our operating performance. A reconciliation of Income from operations to Adjusted Operating Income consists of the following (in millions):


	Three Months Ended March 31,
	2026		2025







Income from operations	$	606	$	435
Franchise agreement and reacquired franchise rights amortization	16		16
RH and BK China Transaction costs	6		6
Corporate restructuring and advisory fees	2		1
Impact of equity method investments (a)	1		(2)
Other operating expenses (income), net	(21)		83
Adjusted Operating Income	$	610	$	539

(a)Represents (i) (income) loss from equity method investments and (ii) cash distributions received from our equity method investments. Cash distributions received from our equity method investments are included in segment income.